Saudi LCGPA Launches Additional Price Preference for Local Products

The Saudi Local Content and Government Procurement Authority (LCGPA) launched an additional price preference initiative to support 208 national products. (SPA)
The Saudi Local Content and Government Procurement Authority (LCGPA) launched an additional price preference initiative to support 208 national products. (SPA)
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Saudi LCGPA Launches Additional Price Preference for Local Products

The Saudi Local Content and Government Procurement Authority (LCGPA) launched an additional price preference initiative to support 208 national products. (SPA)
The Saudi Local Content and Government Procurement Authority (LCGPA) launched an additional price preference initiative to support 208 national products. (SPA)

The Saudi Local Content and Government Procurement Authority (LCGPA) launched an additional price preference initiative to support 208 national products in the medicine, pharmaceuticals and medical supplies sectors, as well as other industrial sectors.

The initiative was launched in cooperation with the Ministry of Industry and Mineral Resources and the Spending Efficiency Center.

The initiative aims to increase the price preference percentage granted to these products when compared to foreign counterparts during the bidding process in government competitions, the authority said.

The percentage, which was earlier determined by the local content preference regulations at 10%, was raised to 30% maximum, based on each sector’s standards. The move aims to mitigate the financial and economic impact on those sectors amid the COVID-19 pandemic.

The authority said the products were determined based on criteria differing from sector-to-sector according to its nature.

The new mechanism is based on providing a price preference of up to 20% for the products covered by the initiative; 10% under the initiative and 10% as per the price preference regulations. Every 10% preference will be based on the specific criteria of each sector targeted under the initiative.

Products identified in the Medicine and Pharma Sector are granted an additional preference of up to 10%, being included in the list, plus the other 10% if the product contains domestic Active Pharmaceutical Ingredient (API).

The initiative is based on Article 10 of the regulations granting preference to local content, Saudi SMEs and publicly listed companies. It also aims to help the sectors achieve self-sufficiency and strengthen supply chain for the target products.

LCGPA expects that the estimated spending on national factories during the initiative period, which ends on Dec. 31, 2021, will range between SAR 2 billion and SAR 3 billion.

The authority said the products were identified after a detailed study by the work team in the initiative. The study included 10,000 products, excluding those in the mandatory list.

A list of the target national products and the additional preference rates for each product will be issued in detail, and each product will be distributed according to the category within the additional price preference initiative, the authority said.



US Treasury's Bessent Urges IMF, World Bank to Refocus on Core Missions

 Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
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US Treasury's Bessent Urges IMF, World Bank to Refocus on Core Missions

 Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)
Treasury Secretary Scott Bessent speaks, Wednesday, April 23, 2025, to the Institute of International Finance Global Outlook Forum at the Willard Hotel in Washington. (AP)

US Treasury Secretary Scott Bessent on Wednesday called on the International Monetary Fund and World Bank to refocus on their core missions of macroeconomic stability and development, arguing that they have strayed too far into vanity projects such as climate change that have reduced their effectiveness.

Bessent, in remarks outlining his vision for US engagement with the IMF and World Bank on the sidelines of the institutions' spring meetings, said that they serve critical roles in the international financial system.

"And the Trump administration is eager to work with them - so long as they can stay true to their missions," Bessent said in prepared remarks to the Institute of International Finance.

"The IMF and World Bank have enduring value. But mission creep has knocked these institutions off course. We must enact key reforms to ensure the Bretton Woods institutions are serving their stakeholders - not the other way around," he said, calling on US allies to join the effort. "America First does not mean America alone."

Bessent said the IMF needed to focus on its key mandate and adhere to strong standards in its lending.

"The IMF was once unwavering in its mission of promoting global monetary cooperation and financial stability. Now it devotes disproportionate time and resources to work on climate change, gender, and social issues. These issues are not the IMF's mission."

"And sometimes, the IMF needs to say 'No.' The organization has no obligation to lend to countries that fail to implement reforms."

Bessent added that the World Bank must be "tech-neutral and prioritize affordability in energy investment. In most cases, this means investing in gas and other fossil fuel-based energy production."

He added that it could also finance renewable energy projects along with systems to manage energy latency in wind and solar.